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Meta agrees to up to $18 billion child safety settlement with states
The deal resolves state claims over allegedly addictive teen use of Facebook and Instagram, and analysts said it removes a major regulatory overhang weighing on Meta shares.
Meta Platforms reached a sweeping settlement with nearly all U.S. states to resolve allegations that it designed Facebook and Instagram to be addictive for children, agreeing to pay as much as $18 billion over a decade.
Under the agreement, Meta also accepted limits on how teenagers can use its platforms. The company denied wrongdoing, but the settlement is intended to end the legal fight without a potentially lengthy trial.
Analysts and legal experts cited by Insurance Journal said the personalized feeds and ad targeting that drive Meta’s profits remain in place. They characterized the settlement as less damaging than the alternative, after the states sought up to $1.4 trillion in penalties before trial.
Insurance Journal also noted that investors appeared to view the outcome favorably, with Meta shares rising about 1%. The article further points to ongoing uncertainty around Section 230 and references prior related litigation involving child safety rules.